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  • Problems of Classical Management Theory

    Standardization; created attitude that humans = machines

    Neoclassical Theory

    (focuses on human side of management) includes behavioral sciences to use employees to; focuses on best way to motivate factors such as, employee relationships & intrinsic value needed to be determined

    two main sources of neoclassical theory

    the human relations movement and the behavioral movement

    the human relations movement

    (Elton Mayo & Roethlisberger's Hawthorne studies) worker productivity increase due to a feeling of value when management and coworkers show additional attention (social/human needs of workers)

    the behavioral movement

    ways to help employees find personal satisfaction in their jobs by providing meaningful work

    behavioral movement leaders

    (Abraham Maslow, Douglas McGregor, Frederick Herzberg, and David McClelland) human desire to work towards personal growth, accomplishment, and achievement.

    According to neoclassical management theory, managers are encouraged to

    create supportive social systems and facilitate the personal development of their workers

    Behavioral Management is the theory that

    managers should better understand the human aspect to workers and treat employees as important assets to achieve goals


    the way a person conducts themselves towards others

    intrinsic motivations

    Autonomy and empowerment
    Social status
    Personal relationships with co-workers


    the internal process that directs enduring behavior

    Hawthorne Effect

    a psychological phenomenon in which participants in behavioral studies change their behavior or performance in response to being observed by the individual conducting the study (more attention = higher productivity)

    Hawthorne studies

    designed to find ways to increase worker productivity.

    Needs theories

    attempt to identify internal factors that motivate an individual's behavior and are based on the premise that people are motivated by unfulfilled needs


    psychological or physiological insufficiencies that provoke some type of behavioral response

    Abraham Maslow's hierarchy of needs theory

    proposed that motivation is the result of a person's attempt at fulfilling five basic needs: physiological, safety, social, esteem and self-actualization

    Physiological needs

    those needs required for human survival such as air, food, water, shelter, clothing and sleep

    Safety needs

    those needs that provide a person with a sense of security and well-being (financial security, job security, good health, protection).

    Social needs

    (love and belonging) refer to the need to feel a sense of belonging and acceptance (affection, intimacy)

    Esteem needs

    refer to the need for self-esteem and respect (self-respect > others respect) (praise & recognition)

    Self-actualization needs

    describe a person's need to reach his or her full potential (inviting employees to participate in decision-making and giving them flexibility and autonomy in their jobs)

    progression principle

    suggests that lower-level needs must be met before higher-level needs

    deficit principle

    claims that a once a need is satisfied, it is no longer a motivator because an individual will take action only to satisfied unmet needs (inviting employees to participate in decision-making and giving them flexibility and autonomy in their jobs

    Douglas McGregor

    proposed that there were two types of managers: ones who assumed a negative view of their employees, also known as the Theory X and others who assumed a positive view of workers, or the Theory Y manager

    Theory X

    belief of managers who believe workers:
    hate work
    dislike change
    are lazy
    are self-centered
    These managers believes his role as a manager is to coerce and control his employees to work towards organizational goals

    Theory Y

    belief of managers who believe workers:
    accept work
    driven to work
    full of potential
    these managers assumes it is there role as a manager to help develop that potential so that the employee can work towards a common organizational goal

    Self-Fulfilling Prophecies

    an employee will act just as the manager assumed he or she would due to the manager's own actions and behaviors.

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